This article is all about how to enter billable expenses in QuickBooks Online Plus and Advanced. Billable expenses come under the expenses you sustain on the behalf of your customers when you perform something for them. QuickBooks Online allows you to easily track and record billable expenses so your customers can compensate them when they receive their invoice.
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Steps To Enter Billable Expenses in QuickBooks Online
Here you know the steps taken to enter billable expenses in QuickBooks. Follow the steps listed below in the given sequence to get reliable results. These steps are:
Step 1: Turn on Billable Expense
For recording the billable expenses, you have to turn on billable expense tracking. To turn it on you have to go through the simple and easy steps listed below:
- In the first step, You have to visit the “Settings ⚙”, then click on the “Account and Settings”.
- Now click on the “Expenses” tab.
- Click on the “Edit ✎” option, you will visit the option from the bills and expenses section
- Now choose the following listed below:
- Represent Items table on the expense and purchase forms
- Tracking the expenses and items by customer
- Make expenses and items billable
- This is an optional field we have for you if you are willing to do this then set up the following listed below:
- Markup rate
- Billable expense tracking
- Sales tax charge
- Bill payment terms
- Once the above steps have been done successfully then click on the “Save” option and then “Done”.
Step 2: Enter a Billable Expense
Here we provide you the right procedure to define how to bill a customer for an expense. The steps you have to take to do this are listed below.
- To start, click on the “+ New” option.
- Now you have to pick the transaction(Bill, Expense, or Check). In this consider the transaction you want to create.
- Choose the payee.
- Click on the expense account for transaction Inside the “Category” column
- Now you have to manually enter the description and amount of the expense, then go for the “Billable” checkbox.
- Choose the customer you are willing to bill for this expense inside the “Customer” column,
Note: It is an optional field. You can enter or ensure that the markup % is correct, then click on the “Tax” checkbox or you can pick a tax agency if you want to charge tax.
- In the end, click on the “Save and Close” option
In several cases, Something’s not quite right at the time of saving expense transactions.
When you are not linked your income account to the expense account, you will see the error on your screen you have chosen, here you know how to fix it now:
- In the first step, you have to open “QuickBooks” and then go to their “Settings ⚙” and then click on the “Charts of Accounts” option.
- Click on the “small icon ▼” on the expense account, you will get this option under the “Action” column.
- Now you have to choose the “Use for billable expenses” checkbox.
- Now pick the account which you want to link up in the “Income Account ▼” dropdown menu.
- In the end, click on the “Save and Close” option to finish it.
Step 3: Add Billable Expenses to Invoices
It is mandatory to link up the billable expense to your customer’s invoice if you want to reimburse the cost. We have discussed some steps to manually do it right now, these are listed below:
- First, click on the “+New” option
- Now choose the “Invoice”
- Choose the customer for which you have to create a billable expense, choose it inside the “Customer ▼” dropdown menu.
Note: It leads to open the Add to invoice window.
- Now click on the “Add” on the billable expense you are willing to charge to your customer.
- In the end, you have to click on the “Save and close” option to end it
Hopefully, your queries are get resolved by reading our article. Multiple QuickBooks users trust us for our expert services if you are facing any kind of difficulties to enter billable expenses in QuickBooks Online, get in touch with our Intuit Certified ProAdvisors by calling on our 24/7 help desk technical support number +1-855-441-4417.
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